According to a study by JP Morgan, about 35 - 40 million Ethereum coins are currently stored in DeFi. Since DeFi is powered by blockchain technology, the opportunities that have been unblocked are way beyond what we had imagined for financial operations all over the world.
Now, with Defi protocols, transactions can be more transparent. As a result, there would be much less reliance on trust as all agreements are carried out by smart contracts. It is no wonder that Defi has been termed as the future of the financial industry. As new technologies and economies are constantly scaling, it is crucial to implement a system driven purely by a sufficient decentralised network - Blockchain technology.
The best time to take advantage of the current financial climate by investing in crypto coins and tokens is now. In this article, we have selected three coins that will position you firmly on the frontiers of Blokian technology and Defi.
Interestingly, Avalanche is also a blockchain platform that provides smart contracts to ensure projects are handled faster and more efficiently in the metaverse. The native coin for Avalanche is AVAX which is used to pay fees on the network. The pride of Avalanche is the fact that the platform can process up to 4500 transactions per second and is also big on scalability.
Furthermore, AVAX coin distribution is regulated so that there is no excess coin in circulation. But holders can vote on how the minting process controls the amount of AVAX paid when a new block is added to the network. Thus, the scarcity of the coin due to the regulation process ensures that there is more demand.
This is Terra's native coin, a blockchain network just like Avalanche. LUNA is one of the most versatile cryptocurrencies that you can own today, based on the functions that it can perform:
1. LUNA is a method of payment for transactions on the network.
2. LUNA gives holders the power to stake and vote regarding proposals. Therefore, you can participate in the governance system. LUNA is also a way of stabilizing the creation of stable coins on the Terra platform.
3. The holders of LUNA can stake the consensus mechanism, which allows them to receive rewards that they can use on the Terra platform.
CashFi (CFI) is a decentralized network that ensures P2P transitions are faster, secure, and more efficient. Interestingly, this platform provides a solid interaction between Defi and NFT. Its native token CFI is the driving force that allows users to access both worlds. The cross-chain systems that cashFi ensure that the CFI token biomes the mode through which users can connect to NFT, Defi, staking, bug bounty, CashFi governance, and other parts of the metaverse.
Wrapped Bitcoin (WBTC)
This is an ER-20 token that is a representation of Bitcoin on the Ethereum Blockchain network. You might be wondering why this made a list. Well, a significant feature of the Wrapped Bitcoin is its integration. By holding or translating Wrapped Bitcoin, you can access smart contracts, Defi apps, and Ethereum wallets.
Another interesting fact about Wrapped Bitcoin is the equivalent of Bitcoin. The proof of reserve system backs up the process of converting 1 BTC to 1 WBTC. Therefore, holders can participate in Defi operations and mainstream crypto projects with Bitcoin.
Defi represents what the financial industry could look like in a couple of years. Therefore, getting started with these coins can help you improve your business and financial operations. There are many more coins that explore the benefits of Defi. However, ensure you do your research before making any decision.
Interested in CashFi? Click below.